Rising house prices are handing the taxman an ever-larger share of Britain’s inheritances – something more and more people are avoiding with sell-to-rent.
Rising house prices are handing the UK taxman an inheritance tax (IHT) bonanza by pushing more estates over the IHT threshold – and more people are using sell-to-rent schemes to reduce the slice the taxman gets.
The IHT threshold for 2007/08 is £300,000 and is rising slowly – but the country's house prices are rising faster. The average property in Greater London will be valued around £75,000 over the threshold – and the rest of the South-East has been catching up fast. It has been estimated that more than 25 per cent of UK households now have a liability to IHT.
Increase in sell-to-rent among over-fifties
Letting agents around the UK have noted an increase in the number of over-fifties in that category who are choosing to sell to rent instead of passing on a property that will generate an inheritance tax bill for their children. By choosing to sell to rent, they also hand responsibility for things like maintenance and repair – things that get less appealing later in life – to a landlord.
Sell to rent and stay in the same home
There are recorded instances of people choosing the sell-to-rent option, giving the cash from the sale to their children and getting an allowance back from them to pay their rent. Not only does this avoid IHT, but sell-to-rent means they can stay living in the same house.
Alternatively, many wealthy over-fifties are choosing to sell to rent to buy themselves some time before care becomes an issue. They are bankrolling an enjoyable retirement with the proceeds of their sell-to-rent sale and have the flexibility of being able to choose when they should move out of their home and into residential care or one of the alternatives.
Retirement home shortage fuels sell-to-rent boom
A shortage of retirement homes – and the fact that many do not come up to the standards many people demand – is helping to fuel the popularity of sell-to-rent among wealthier people in or approaching retirement.
And many "empty nesters" are enticed by the rising house prices of the last few years – guaranteeing many of them a sizeable cash sum to supplement their pensions or savings. There is a strong argument for homeowners to take the opportunity to sell-to-rent, given current market conditions, at any age.
Helping reduce the inheritance tax bill can make a sell to rent option all the sweeter.
Sell to Rent with selltorentltd.co.uk
If you're caught in a financial house-trap, selltorentltd.co.uk can throw you a life-line. Selltorentltd.co.uk offers a sell to rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The sell to rent scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Selltorentltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Sell to Rent Ltd. today on: 0800 1313 999.